Question 1

'Group behavior' is a feature of

Accepted Answer

A)  monopoly
B)  oligopoly
C)  perfect competition
D)  monopolistic competitionE) C) and D)
F) B) and C)

Question 2

The concept of 'Kinked demand curve' is related to

Accepted Answer

A)  monopoly
B)  monopolistic competition
C)  perfect competition
D)  oligopolyE) None of the above
F) C) and D) D

Question 3

A discrimination monopolist charges in a market

Accepted Answer

A)  lower prices if it has lower elasticity
B)  higher prices if it has lower elasticity
C)  lower prices if it has higher elasticity
D)  cannot sayE) All of the above
F) A) and D)

Question 4

Monopsony refers to

Accepted Answer

A)  single seller
B)  a few sellers
C)  single buyer
D)  a few buyersE) B) and C)
F) None of the above

Question 5

The concept of 'Kinked demand curve' was developed by

Accepted Answer

A)  alfred marshal
B)  j r hicks
C)  p m sweezy
D)  a.k senE) A) and B)
F) C) and D)

Question 6

Who introduced various types of price discrimination

Accepted Answer

A)  alfred marshall
B)  adam smith
C)  a c pigou
D)  j b sayE) None of the above
F) C) and D)

Question 7

'Cartels' are example for

Accepted Answer

A)  collusive oligopoly
B)  non-collusive oligopoly
C)  monopsony
D)  none of the aboveE) All of the above
F) B) and C) A

Question 8

Price leadership can be in the form of

Accepted Answer

A)  price leadership by a low cost firm
B)  price leadership by a dominant firm
C)  a barometric price leadership
D)  all of the aboveE) A) and D)
F) B) and C)

Question 9

If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree price discrimination

Accepted Answer

A)  will increase his tr and total profit
B)  can increase his tr and profit
C)  cannot increase his tr and profit
D)  will charge different prices in different marketE) B) and C)
F) A) and D)

Question 10

The cross elasticity of demand for the monopolist product is

Accepted Answer

A)  very low
B)  moderate
C)  high
D)  very highE) None of the above
F) A) and B)

Question 11

Oligopoly is a market situation characterized by

Accepted Answer

A)  large number of buyers and sellers
B)  a single seller
C)  fairly large number of buyers and sellers
D)  a few sellersE) A) and C)
F) None of the above

Question 12

A monopolist usually earns

Accepted Answer

A)  economic profit
B)  only normal profit
C)  losses
D)  profit and losses, which are uncertainE) All of the above
F) B) and C)

Question 13

Under pure monopoly, there will be

Accepted Answer

A)  no distinction between firm and industry
B)  one firm no industry
C)  no firm one industry
D)  very few firmsE) A) and C)
F) None of the above

Question 14

Selling cost is maximum in the case of

Accepted Answer

A)  monopoly
B)  oligopoly
C)  perfect competition
D)  monopolistic competitionE) All of the above
F) B) and C)

Question 15

The best level of output for the monopolist is

Accepted Answer

A)  ac is minimum
B)  tc=tr
C)  tr and tc are parallel
D)  tr is maximumE) A) and B)
F) A) and C)

Question 16

Discriminating monopoly is possible if two markets have

Accepted Answer

A)  differing elasticity of demand
B)  differing average cost
C)  same elasticity
D)  different average costE) C) and D)
F) A) and D)

Question 17

Which of the following is known as the perfect price discrimination

Accepted Answer

A)  first degree price discrimination
B)  second degree price discrimination
C)  third degree price discrimination
D)  nine of the aboveE) A) and D)
F) All of the above

Question 18

Under monopoly, the equilibrium price is

Accepted Answer

A)  equal to mc
B)  less than mc
C)  more than mc
D)  equal to acE) All of the above
F) A) and C) C

Question 19

Monopolist will not produce that portion of demand curve where the elasticity of demand

Accepted Answer

A)  equal to unity
B)  less than unity
C)  greater than zero
D)  none of the aboveE) A) and B)
F) A) and C)

Question 20

A firm practicing price discrimination will be

Accepted Answer

A)  changing qualities of the product
B)  buying from the cheapest market
C)  buying from firms
D)  charging different prices in different marketsE) None of the above
F) C) and D)

Exam 4: Understanding Monopoly, Price Discrimination, and Oligopoly in Economics

'Group behavior' is a feature of

Correct AnswerverifiedShow Answer

The concept of 'Kinked demand curve' is related to

Correct AnswerverifiedD

A discrimination monopolist charges in a market

Correct AnswerverifiedShow Answer

Monopsony refers to

Correct AnswerverifiedShow Answer

The concept of 'Kinked demand curve' was developed by

Correct AnswerverifiedShow Answer

Who introduced various types of price discrimination

Correct AnswerverifiedShow Answer

'Cartels' are example for

Correct AnswerverifiedA

Price leadership can be in the form of

Correct AnswerverifiedShow Answer

If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree price discrimination

Correct AnswerverifiedShow Answer

The cross elasticity of demand for the monopolist product is

Correct AnswerverifiedShow Answer

Oligopoly is a market situation characterized by

Correct AnswerverifiedShow Answer

A monopolist usually earns

Correct AnswerverifiedShow Answer

Under pure monopoly, there will be

Correct AnswerverifiedShow Answer

Selling cost is maximum in the case of

Correct AnswerverifiedShow Answer

The best level of output for the monopolist is

Correct AnswerverifiedShow Answer

Discriminating monopoly is possible if two markets have

Correct AnswerverifiedShow Answer

Which of the following is known as the perfect price discrimination

Correct AnswerverifiedShow Answer

Under monopoly, the equilibrium price is

Correct AnswerverifiedC

Monopolist will not produce that portion of demand curve where the elasticity of demand

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A firm practicing price discrimination will be

Correct AnswerverifiedShow Answer

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D

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A

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C

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